A Comment on the Us Student Loan Situation From a Post-Keynesian Perspective

This paper aims to contribute to the debate on the US student debt situation. First, it highlights the determination of labor earnings and economic activity as a function of macroeconomic conditions and the relevance of considering this endogeneity to analyzing student debt sustainability. Next, I present a background on student loans and the labor market in the US. Moreover, using a Minskyian framework, I argue that the current student debt situation can have adverse results on economic activity, although not leading to financial instability. Last, I comment on the student debt cancellation debate, proposing alternative policies with more progressive and lasting effects.